My PayPal Credit Account was closed mistakenly by PayPal

[maziak]

Hello everyone,

So I've been a PayPal Credit user for over an year now and I ran across an issue that I was a bit confused about at first. So to start things off, at the beginning of every month I always login to my PayPal to pay a partial of my Credit Balance that I owe. I've been doing that for sometime now because I do use PayPal credit consistently, especially as an online shopper.  So for the month of February (2018) I logged into my PayPal, you know to do my payments like I'm used to, and then I noticed my PayPal Credit Balance wasn't on my summary tab anymore. Normally, I'd login, go to my summary tab and pay my bill for that month. So the first thing I did when I realized my PayPal Credit balance was gone--also my option to use PayPal Credit for purchases--I decided to email support in regards to my PayPal Credit not being shown in "Summary". Afterwards, I received a reply about why my account was closed.

"...We discovered that a bankruptcy was filed due to information obtained from a third-party vendor.  We followed our existing policy to stop account use due to the bankruptcy filing. Unfortunately, we will not be able to approve you for another PayPal Credit account.  We apologize for any inconvenience this may cause.  If you used your PayPal Credit account through your PayPal account, you can still make purchases using PayPal with other funding sources."

So the first thing that shocked me was, a bankruptcy? First of all, I never filed for bankruptcy, nevertheless, I'm only 21 years old, so that doesn't really add up. Afterwards, I remembered about my father, who has the same name as me, did successfully file for bankruptcy. So I was like that has to be it. 

Things I want to clarify:

• This is my PayPal account created by ME.
• It has all MY information.
• It was created under my SSN.
• When I applied for PayPal Credit it was obviously MY record being accounted for in terms of eligibility.
• No where on my PayPal is there any information about my father.
• And yes, I still owed a PayPal Credit Balance

Now my question, how does something like that happen? Is a fault on PayPal's side?

[Slavy]

Hello I just read your unfortunate event and am currently dealing with the same issue. I’ve been contacting them for over two weeks and no supervisor wants to speak to me. They just told me it’s a “portfolio” issue and this will be lifted. Well, it hasn’t happened. The department that has my case has no direct number and wasn’t able to get transferred over. They told me to call back every day. I’m at that point we’re this issue will be hurting my financial/credit status and has left me no choice then possibly persue legal action. This is absolutely frustrating and ridiculous. I hope you get your issue resolved quickly!

[Emily118]

I'm having the same problem! I logged into my PayPal account to make a payment towards my PayPal credit and the tab was gone. I called PayPal and they said my account was closed because a third party told them I filed for bankruptcy in the past! I have never filed bankruptcy in my life, in fact, I just bought a house! I am beyond angry this has happened, and every time I call them they just tell me they will investigate and it takes time. Almost 3 months have passed and I'm still unable to make a payment on my account. I will say one thing, when this gets resolved I will be closing all my PayPal accounts and never use PayPal again.